Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
All the recent appointments of managers and directors, especially the managers, for instance the mining guy, would they really have come on board if they thought that Solgold was likely to be sold in a matter of weeks? I remember my last major job interview, the CEO and the managers interviewing me went to great lengths to prove to me the company was solid and not likely to fold at any minute. I would not have taken the job if I thought I would be out of work within weeks and sure this applies to these people as well. Obviously nothing is guaranteed but I believe they would expect reasonable security.
Frog
Quady, I am afraid you are wrong on this point. ENSA is a company that we own 85% of and CGP own 15%. Unfortunately, ENSA owns more than just Alpala, as it includes all the licence area which it owns. All the other licences which Solgold own are actually owned by locally listed companies 100% owned by Solgold. The problem with Alpala, if we sell it outside of ENSA, we would have to obtain CGP's agreement, and any proceeds would have to be slit 85:15 with them. It would be easier to sell ENSA rather than just Alpala, but again CGP would have to agree, although, in theory, it would be possible to sell just our part, but then most buyers would want 100% IMHO.
I believe this structure was put together so that we could sell sites by selling the subsidiary that actually owns it. It is a lot easier that way and, one presumes that the permits, etc., don't become void.
All IMHO
Frog
Casapinos - As I said earlier, BHP is unlikely to sell their shares to Newcrest, or vice versa. Cornerstone will sell theirs to the highest bidder! On that basis, and bearing in mind that NM controls upwards of 20% of Solgold's shares, it is unlikely that any bidder will get past 50%. You cannot expect more than 50% of PIs/small investors to vote for any proposed bid. Therefore any bid is unlikely to succeed and so Solgold will go to production.
Frog
To succeed, a bidder must secure 51% of the shares. If he does not do that , he does not succeed. We have discussed the way shareholdings are likely to go in the past. It is unlikely that BHP and NCM will give (sell) each other their shares. Cornerstone will, no doubt, sell to the highest bidder. A large chunk is controlled by NM and the PIs will not all go the same way. Thus it will be difficult, but not impossible, for a bidder to get over the line. Because of all that, I expect Solgold to go to production.
PS I had my last Ecuadorian banana for my breakfast today!
Frog
Schlemiel's post this morning included outstanding options which included BHP 19,250,000 shares @ £0.37 between 27.11.2019 and 27.11.2024. If they exercised these options this would help their position for a bid.
I find it hard to believe that NCM or BHP would sell their shares to each other except at a very high premium as they are in fierce competition, likewise the other mining majors.
I believe NM would not want a JV as he would not be the lead and I suspect it would be seriously to his and Solgold's disadvantage and the PIs as well.
I believe that Ecuador have negotiated a new loan, or roll over of the old agreement, so time is not quite of the essence as it was a few months ago. They still need to start reducing it but I believe that it does give Solgold time to bring Alpala to production plus one or two of the others.
And ... I had a banana from Ecuador for my breakfast this morning so their agricultural sector must be earning a little foreign currency!
Frog
I have mentioned it before, I believe the share will get to £10.00 a share in due course, although I might accept £5 a share if push comes to shove. Obviously that will involve production under way at 4 sites whenever that will be. I have always said that I want to see Alpala taken to production with some of the others under development.
Frog
What I don't understand is why so many people on here are so keen to sell out. Surely the only we are going to achieve full value from all of our most interesting licences: Alpala, Blanca, Porvenir, Hueca and Rio and perhaps some of the others too, is to take them to production and beyond. I also note that Porvenir has another slightly more stretched out area a little to the south of the current drilling area which may produce interesting results. Others have made it into the major circle, and all they all had to start somewhere. To me any offer that does not fully value the five sites I listed above is a low ball offer and I would hope it would be rejected. I don't mind a bid as that will help the shareprice, but I would hope that it will be rejected. NM says that there will be plenty of exit points along the way and I sure there will be, but we don't have to have a successful bid to achieve them.
Lastly Quady speaks a lot of sense, I might not agree with everything he says, but I don't like seeing him being picked on. Others of you write very useful posts and the articles which are posted on here are really useful. How do you find them all?
Frog
Last night Ingo intimated that NCM and BHP would not be happy with their mere 13% stakes in Solgold. NM has made it clear that he would not issue more shares other than to CGP shareholders. NCM have done nothing to date and BHP can't until 15th October, but after that there is nothing to stop BHP buying Solgold shares on the market to build up their share holding. If either company were to start doing that quietly, it would likely boost the share price. Is it a 30% holding which would trigger a bid by LSE rules? They would have to periodically declare an increased holding. Building up their stake could be done in readiness for a full bid if that is what they want to do. I am thinking primarily of BHP but it could apply to NCM as well. Any thoughts?
Frog
There have been a lot worse articles out there. At least he has done his homework and it does put our name out into the wider world enticing some investors, perhaps, into researching the share.
Frog